IAG Announced Thursday A Loss of 1.3 Billion Euros

IAG, the parent company of the airline British Airways, announced Thursday a loss of 1.3 billion euros in the third quarter and further reduced its flight schedule for the end of the year, the restrictions linked to coronaviruses continuing to weigh on the airline sector.

These are the first results published by IAG since Luis Gallego took over from Willie Walsh as Managing Director in early September.

The group, also owner of the airlines Iberia, Vueling and Aer Lingus, announced its preliminary results for the third quarter a week earlier than expected, with revenue down 83% to 1.2 billion euros , the company operating in an environment of “high uncertainty”, according to IAG.

IAG said that in the fourth quarter, its flight program would be capped at 30% of its capacity, while it previously planned to cap it at 40%.

Under these conditions, the group warned that it no longer expected to achieve a break-even in terms of net cash flow from operating activities during the fourth quarter, but specified to benefit from strong cash flow.

The group raised 2.74 billion euros in early October after a capital increase, bringing its liquidity to 9.3 billion euros.

Lufthansa also released its results earlier than expected on Tuesday, reporting a quarterly operating loss of 1.26 billion euros.

 

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